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New Plays
Long Plays
Short Plays
CE None
IACI  
SNDK  
SOLF  

New Long Plays

Celanese Corp. - CE - close: 46.35 change: +0.76 stop: 44.45

Company Description:
As a global leader in the chemicals industry, Celanese Corporation makes products essential to everyday living. Our products, found in consumer and industrial applications, are manufactured in North America, Europe and Asia. Net sales totaled $6.4 billion in 2007, with approximately 70% generated outside of North America. (source: company press release or website)

Why We Like It:
CE is a relative strength play. The stock rallied to new highs in late April following its earnings report. Then shares spent the next three weeks consolidating sideways. Last Friday saw CE breakout over resistance near $46.00. Shares have a steady trend of higher lows as investors buy the dips. The Point & Figure chart is bullish with a $65.00 target. We are suggesting bullish positions now or on a dip near $45.50. We'll try and play with a tight (conservative) stop loss at $44.45. Our initial target is the $49.90-50.00 range. CE moves kind of slowly but we're tempted to add a second target above $50.

Picked on May 11 at $46.35
Change since picked: + 0.00
Earnings Date 04/21/08 (confirmed)
Average Daily Volume: 1.3 million

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IAC/Interactive Corp. - IACI - cls: 21.54 chg: +0.34 stop: 20.79

Company Description:
IAC operates leading and diversified businesses in sectors being transformed by the internet, online and offline ... our mission is to harness the power of interactivity to make daily life easier and more productive for people all over the world. (source: company press release or website) Some of IACI's properties are Ticketmaster, Home Shopping Network (HSN) and Expedia.

Why We Like It:
The long-term trend in IACI is still down but the stock is doing a pretty convincing job of building a bottom over the last couple of months. Shares produced a bullish engulfing pattern on Friday and look poised to rally higher through resistance. We're suggesting a trigger to buy IACI at $21.90. More conservative traders might want to wait for a rise past $22.00 instead. We do expect potential resistance at the 100-dma but suspect IACI will eventually push through it. One of the biggest risks here is the proposed break up of IACI and the headlines surrounding this plan. IACI management wants to break up the company into five separate businesses. Meanwhile Liberty Media (LINTA) wants to stop the break up because currently they have majority shareholder voting rights and after the breakup they would not. Liberty is trying to negotiate some sort of asset swap for Expedia. IACI doesn't seem to be interested. Right now the courts have ruled against Liberty but the could appeal. If IACI gets its way the company would be split up by August. If we are triggered at $21.90 our target is the $24.50-25.00 range or the 200-dma, whichever is hit first.

Picked on May xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/24/08 (unconfirmed)
Average Daily Volume: 3.0 million

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SanDisk - SNDK - close: 29.18 change: -0.02 stop: 27.69

Company Description:
SanDisk Corporation, the inventor and worlds largest supplier of flash storage cards, is a global leader in flash memory from research, manufacturing and product design to consumer branding and retail distribution. (source: company press release or website)

Why We Like It:
Shares of SNDK turned the corner back in March and have been slowly marching higher. Shares just pulled back to their multi-week trendline of support on Friday and traders bought the dip. This looks like an entry point for bullish positions (or on another dip near $28.50). We're suggesting a stop loss at $27.69. More conservative traders could use a stop closer to $28.00 or $28.25ish. Our target is the $34.00-35.00 range. The Point & Figure chart has a bullish triple-top breakout buy signal and points to a $51 target.

Picked on May 11 at $29.18
Change since picked: + 0.00
Earnings Date 07/17/08 (unconfirmed)
Average Daily Volume: 9.9 million

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SolarFun Power - SOLF - close: 14.85 change: +0.70 stop: 13.79

Company Description:
Solarfun Power Holdings Co, Ltd. manufactures both PV cells and PV modules, provides PV cell processing services to convert silicon wafers into PV cells, and supplies solar system integration services in China. (source: company press release or website)

Why We Like It:
This play is for the more adventurous risk-takers out there. The solar-energy stocks have been mixed lately but SOLF appears to be mounting another attempt at a rally. Shares broke through one trendline of resistance on Tuesday last week. Now the stock is poised to breakout over its 200-dma. We're suggesting bullish positions now or anywhere in the $14.15-15.00 zone. If you prefer to see a breakout look for a rise over the 200-dma at $15.30. We're setting two targets. Our first target is $17.00. Our second target is $19.00. This can be a volatile stock and we consider a high-risk play. Earnings are due on May 21st and we plan to exit ahead of the report. FYI: The P&F chart is bullish with a $24 target.

Picked on May 11 at $14.85
Change since picked: + 0.00
Earnings Date 05/21/08 (confirmed)
Average Daily Volume: 4.5 million
 

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